EU may sue Corning over possible smartphone screen monopoly

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Most smartphones today feature protective glass on the display and, sometimes, the back panel.

Corning dominates this market with its Gorilla Glass and Ceramic Shield products, which smartphone manufacturers widely use. 

However, Corning’s strong market position has drawn suspicion, with the European Union (EU) launching an antitrust investigation to examine whether the company’s practices have unfairly limited competition.

EU is investigating if Corning monopolizes the smartphone screen segment

Gorilla Glass maker Corning is facing a lawsuit from the EU over alleged abuse of its dominant position in the smartphone screen market.

The European Commission is investigating if Corning has used exclusive supply agreements to pressure smartphone makers and glass processors into sourcing almost all their protective glass from Corning. 

These agreements allegedly provide rebates to smartphone manufacturers for sticking exclusively to Corning and require them to report any competitive offers they receive. 

The EU competition chief Margrethe Vestager said:

“It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in producing the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass.”

Similarly, Corning’s contracts with raw glass processors reportedly contain exclusivity clauses and stipulations preventing them from challenging Corning’s patents.

This dominance is exemplified by Apple’s Ceramic Shield, developed by Corning and used in iPhones since the iPhone 12.

The European Commission suspects such agreements could unfairly block competitors, leading to fewer choices, higher prices, and less consumer innovation. 

Commenting on the lawsuit, Corning told The Verge:

“Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business. As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation.”

Corning could face penalties if the investigation confirms these practices as violations of EU competition laws. The EU Commission has not set a deadline for completing the investigation.

What do you think about the EU’s stance on this matter? Do you think Corning should be regulated? Let us know your thoughts on the matter below in the comments, or reach out to us via our Twitter or Facebook.